CoreWeave unravels
CRWV•CoreWeave shares fell 15% on Wednesday as renewed inflation and rate-hike concerns intensified the AI stock selloff. Its credit default swap rates topped 600 basis points Wednesday and rose above 1,000 basis points early Thursday.
1. AI selloff deepens
Renewed inflation and interest-rate concerns reignited this week's AI stock selloff, with declines in CoreWeave's debt and equity and in Oracle shares. The S&P 500 fell more than 1%, while chip and technology stocks broadly declined.
2. Credit risk rises
CoreWeave shares fell 15% on Wall Street Wednesday, while Oracle shares dropped 10%. CoreWeave credit default swap rates topped 600 basis points Wednesday and rose above 1,000 basis points early Thursday, as some investors sought to hedge exposure to leveraged companies in the AI investment boom.
3. Broader market pressure
Asian equities also fell, with South Korea's Kospi down more than 7% and Japan's Nikkei down 5%. Treasury yields initially rose after the inflation data but then retreated as technology stocks came under pressure.
